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Wrong measures can undermine good theory and practice. When adjusted for changes in price levels due to inflation, this permits comparisons over time. He lacked the foundation for the underlying conceptual theory. In the physical sciences, we are accustomed to measuring tangible physical parameters such as distance, mass, speed, frequency and wavelength. As Giarini reminds us, like other man-made powerful tools, financial information can be either positive or negative, depending on the values it is used to express.
When it comes to measures of social development, sustainability, human welfare and well-being, the challenge is even greater. Global satellite navigation has made the chronometer obsolete. Before examining other options, we can simply summarize the most salient concerns that need to be addressed in the search for more adequate alternative measures. Modern medicine could not exist without the thermometer, stethoscope, sphygmomanometer and glucometer, along with measures for blood cell count, hemoglobin, cholesterol, and countless other metrics. Not only in its assumptions, but in its stated goals as well, economics too often equates all market activity with human welfare and well-being.
Without sound theory, measures can result in misleading conclusions. Measurements often generate paradigmatic changes in our understanding of Nature and in turn these changes influence the meaning and process of measurements.
As money is one of the most powerful instruments of social progress, price is one of the most powerful tools of measurement. Tools are an instrument for social evolution. Recognizing the urgent need for more accurate ways to assess national progress, the country began a search for alternatives.
It counts special locks for our doors and jails for people who break them. This view challenges the fundamental notion of price based on the equilibrium between supply and demand as an adequate measure of value. The Indian example highlights the crucial need for additional and alternative methods. But in the social sciences, many of the parameters we seek to measure do not lend themselves to simple quantification. For decades, the very intensity of the pursuit for a better life obscured the inadequacy of our conceptions and our instruments for achieving it.
The stakes are high and the choice is ours. The legs lock open and the two frames attach to each other with a super easy connector. In either case, it is important to recognize both what is included and what is excluded in each formulated measure. The efficiency of our tools is an index of our social development.
Rather than relying solely on direct measures such as literacy, life expectancy and infant mortality, the study proposed searching for parameters that were correlated with rising living standards. An increased heart rate is an indicator rather than a measure of health. Price is a powerful tool for measurement, but it can also introduce gross distortions for the simple reason that price is an inadequate measure of value.
Simplicity, universality, ease of application and timeliness are great strengths that should not be lightly discarded. My last one had legs that were flush to the outside edges of the frame and I was forever smacking into one. Even great minds can fail in matching theory and measurement.
It is not merely scientific precision that we are after, but more powerful instruments for achieving human objectives. The concept of zero was unknown to the Greeks and Romans. Humility is always a virtue, but never more so than in purporting to measure the fulfillment of human aspirations.
Evolving measures to adequately reflect risk and uncertainty is a formidable challenge for the future of economics. Therefore, in the social sciences, we must often seek for more effective ways to measure the complexity of social reality. Today humanity pursues a common quest for higher standards of living, greater economic security, sustainable development, higher levels of welfare and well-being.
Before examining the utility of these alternatives, it is necessary first to examine more closely the theoretical conceptions and definitions on which they are based. This changed dramatically with the development of quantitative economic measures after World War I. Theory and measurement go hand in hand.
This approach must inevitably be supplanted by the evolution of a more human-centered approach to economic science. True advance in measurement must be predicated on commensurate advance in the underlying theory. Galbraith cites poor economic intelligence among five principal causes for the Great Depression. Success of physical and life sciences today are rooted in precise and adequate measurements married with sound theory. The most obvious answer is certainly the most reasonable and acceptable.
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